Leading stock exchange
BSE on Monday launched trading in
interest rate options based on Government of India securities.
The exchange is the first to provide trading of
interest rate options.
“BSE had launched interest rate futures in January 2014, which has an average market share of 40 per cent and has now expanded its offerings in interest rate derivatives with the launch of options,” the exchange said in a release.
An interest rate option is a financial derivative contract whose value is based on
rupee interest rates. These contracts will be a part of the Interest rate derivatives in the currency derivatives segment.
“Interest rate options provide for an efficient tool for managing interest rate risk and exposure through hedging. With a wide array of instruments being made available, investors can hedge their risk across the
yield curve,” BSE said in a release.